JAMB Economics Past Questions & Answers - Page 445

2,221.

A commercial bank is unique in that it is the only institution that

A.

Makes loans to private people and businessmen

B.

Accept deposits

C.

Can store people’s valuables

D.

 Can transfer money from one place to another for its customers

E.

Saves money through the granting of credits

Correct answer is B

The most distinctive features of a commercial bank are borrowing and lending, i.e., acceptance of deposits and lending of money to earn Interest (profit). 

2,222.

Malthus became famous through his theory which may be stated simply

A.

The death rate may become so high that people may not be able to produce

B.

Population may outgrow the means of subsistence

C.

People will eventually decide not to have children

D.

Migration of people from one place to another may leave some parts of the world barren

E.

 All of the above

Correct answer is B

Malthus's theory states that population growth will always tend to outrun the food supply and that the betterment of humankind is impossible without strict limits on reproduction

 

2,223.

Inferior goods are referred to in Economics as goods

A.

Whose quality is low

B.

 Consumed by very poor people

C.

Whose consumption falls when consumer's' income rises

D.

Which satisfies only the basic needs

E.

None of the above

Correct answer is C

In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases)

2,224.

The following is NOT a reason for the existence of small firms

A.

Scale of production is limited by the size of the market

B.

Expansion brings diminishing returns

C.

Large firms can carter for wide markets

D.

Small firms can provide personal services

E.

All of the above

Correct answer is B

No explanation has been provided for this answer.

2,225.

When elasticity is zero, the demand curve is

A.

 Perfectly elastic

B.

 Perfectly Inelastic

C.

Concave

D.

Downward sloping

E.

Circular

Correct answer is B

If the price elasticity of demand is zero, it means that the demand is independent of the price. No matter how the price changes, people buy the same quantity of the product. The demand curve of essential commodities like medicines has a slope that approaches zero. The demand curve will be perfectly inelastic.